When hiring your child, tax withholding might be different than when you hire someone else’s child.
If you are the sole owner of the business, you must withhold income taxes from your children’s wages. But, you do not have to withhold or contribute to FICA taxes until the child turns 18.
If you own a corporation, your child is subject to incomes taxes and FICA taxes.
If you are in a partnership and your partner is the child’s other parent, you do not have to withhold FICA taxes until the child turns 18. You still need to withhold income taxes.
If any of your partners is not a parent of the child, you must withhold all taxes. The taxes include income taxes and FICA taxes.
